Strategic Data Management adopts VoIP and saves 40% on TCO

About Strategic Data Management

SDM provides information management solutions that increase ROI on direct marketing by use of data analytics, data management, database design, development and hosting systems. SDM has been established for twenty years and competes in an extremely demanding environment. It has thirty employees in two offices (London and Brighton) and its customers include Orange, British Gas, the FSA and Homechoice.

The Challenge

SDM operates at the cutting edge of its industry and has a reputation as a leading high tech solutions provider. To this end, SDM was keen to capitalise on the functional benefits, flexibility and cost savings offered by implementing a voice over IP (VoIP) system.

Previously, SDM used a traditional phone system and had been experiencing high call costs. It was important that any new solution should be cost-effective as well as providing extra functionality such as easy conference calling and call forwarding. The key decision was whether to implement an in-house PBX or to opt for an externally hosted solution. Maintenance had been an issue in the past and valuable staff resources were being spent on moving, adding and changing phones around in the office, which could be better used elsewhere.

SDM also had a 2Mbps data line, which was rarely used to capacity. This further supported the decision to move to VoIP as the IT department was keen to use some of this bandwidth for voice traffic, increasing the overall efficiency of the system.

Sooner or later, traditional phone systems will become obsolete, said Adil Mughal, IT manager at SDM. We realised that by continuing to use traditional voice systems, we were inefficiently using assets, so by converging voice and data technologies, the business would be streamlined, saving money and making difficult maintenance a thing of the past.

The Solution

SDM opted for Viatel's Hosted IP Centrex solution with a 2Mbps data line, half of which was dedicated to voice traffic. The VoIP solution came bundled with extra features such as voicemail, unified messaging and remote voicemail access. Choosing a hosted solution meant that SDM did not need to have its own PBX on-site, and that all maintenance work was carried out by Viatel.

Viatel carried out a network audit before the work began, surveying all of SDM's telephony and networking equipment. The audit discovered that it was unnecessary to rip out or replace any of the old equipment and the existing system was fully converted to VoIP with minimal hassle for SDM within forty days.

As there are only twenty people in the London office, it was decided that a pilot scheme would be inappropriate, and after some initial staff training, the service ran smoothly. The solution was installed in the London office, and SDM currently has plans to implement VoIP in the Brighton office in the third quarter of 2006.

We're very happy with the way that Viatel has handled the installation and implementation of the VoIP service. Everyone became accustomed to the new system very quickly and it's very easy to use. It was also great that we opted for a hosted solution, so that we can now allocate staff resources which had formerly been tied up with the maintenance of the telephony system.

Results

SDM has halved its phone bill and estimates that over the next two years it will save around 40% on total cost of ownership, including the cost of the initial installation. This also includes the cost of any downtime, which was occasionally a problem with the previous provider, but with Viatel's service level agreements, SDM has benefited from 99% call reliability and has so far never lost an active call.

Having a hosted solution has freed up resources, which means that SDM can now concentrate more on its core business activity. After the expansion of the VoIP system to the Brighton office later in the year, outside callers will be able to use a 0207 (London) code to reach either office, giving a more unified presence and free calls between the sites.

SDM's mobile users can now pick up their voicemail from any location, and the London office staff have been benefiting from the extra features bundled with the VoIP system. These include group pickups, so that calls can be automatically routed to specific departments, call forwarding and easier conference calling. Having a VoIP system also supports SDM's plans for future expansion it will be much easier to extend the existing telephony system to a new office in the north of the UK, or in Europe, whilst still maintaining a unified presence. This would have been a problem with the previous system, but with VoIP, it is as easy as plugging and unplugging a phone. SDM also has plans to use a virtual private network to allow remote workers to access the voice system so that they can make and receive calls as if they were in the office, simply by connecting to the Internet.

We are very pleased with the VoIP solution, continued Mughal. It's been a pleasure working with Viatel, and the customer service has been excellent. The call quality is indistinguishable from traditional telephony and customers don't realise we're using a VoIP solution until we tell them. At times, even our own staff forget the move ever happened, although we're certainly reaping the benefits in many ways. SDM has aggressive growth plans, and VoIP allows us to pursue these with minimal aggravation

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